You might have heard of DeFi staking and those huge APY's? Problem for me, and I guess for many others, has been those huge gas fees. Some exchanges do offer interesting locked staking options but those might have restrictions like too big minimum stake. However, there are some nice options for us "little league" players. In this article I'll be focusing on what Binance and Kraken has to offer.
The good thing about holding and earning interest on exhanges is that it's really fast to redeem your assets back to your trading account. Let's say that you are a swing trader waiting for that moment but the market just isn't moving enough. Then why not earn some extra on top of your crypto when waiting for the right time?
So if you don't have enough capital to jump into high fee DeFi game but are interested in gathering some extra, then this article might give you some good tips!
On Binance you will find ways to earn interest by clicking the Finance section. Then choose Binance Earn from the dropdown menu. Here you'll find all the Flexible Terms Binance is offering. Term flexible meaning that you can transfer your assets in and out from savings account without much fuzz.
There are 58 flexible savings products at the time of writing this. As you can see in the pic below, the APY's can differ a lot depending of which coins you are staking. You might think that the interest rates are quite low, but at least it's some icing on my assets when I am waiting to sell.
I am also staking USDT during a bull run when everything is just too expensive. So either way I'm getting a little cherry on top of my cake. And at least I should be covering the upcoming trading fees which are already pretty decent with Binance.
In addition to flexible savings Binance offers fixed terms and high risk products which have higher interest rates but also bigger min deposit.
Also worth checking out is Binance Launch Pool where you earn coins of new projects by staking BNB.
Oh, and good news to all Doge traders/holders: you can get 5% interest on DOGE!
+ Many products
+ Launch Pool
+ High earnings when locking assets
- Relatively small interest with flexible savings
Kraken doesn't offer as many savings products as Binance but the interest rates are higher and redeeming is also fast and easy.
Of course on Binance you can enjoy even higher rates but then we are talking about their fixed term, locked staking products. For example you can freeze your DOT for 30 days and get 15.79% interest on that. You will also need to stake at least 10 DOT which is minimum in this case.
Kraken's staking is more like Binance Flexible Savings. If we continue the comparison with our DOT example: on Binance Flexible the DOT's APY is 2.53%. On Kraken you'll get 12% reward and when unstaking and your asset is ready to trade in minutes. Also notice that on Kraken you can stake much smaller amounts.
Kraken rewards are paid twice a week and you can choose to automatically stake them.
+ High reward % on flexible staking
+ Can stake smaller amounts
- Only few assets to stake
Hopefully this has been helpful and some way inspired you! And please remember: "Not your keys, not your coins". You should consider keeping larger amounts in a wallet instead of exchanges.
Check out my favorite crypto sites:
- Torum - crypto-centric social media platform, get XTM
- lbry.tv - post stuff, get LBC
- Luckyfish.io - crypto casino with a faucet and rain. And so many coins..
- BetFury - crypto casino, get and stake BFG
- Womplay - play games, earn EOS (for more info, read my article about Womplay, https://www.publish0x.com/thin-ice/womplay-xmdokvr)